2015 Budget Round-Up
I know, I know it’s dead boring and long winded and you can’t quite keep up so here’s the main bits of the 2015 budget which makes for easier reading.
Basically, if you are employed, looking to buy your first home and enjoy a beer, then you’re quids in!
Increase in personal tax allowance. It’s increasing to £10,800 next year and the next year will be increasing further to £11,000. 27 million people will benefit from this tax cut.
If you are lucky enough to pay the higher rate of tax, then the threshold is increasing to £43,300 but you’ll have to wait until 2017/18 to benefit from it.
First Time Buyers
Help to Buy ISA to be introduced for first time buyers. For every £200 you put in, they will put in £50, up to a maximum of £3,000. This needs to be used towards the deposit for your first home.
Flexible ISA’s from autumn 2015. Need to withdraw some of your cash? Not a problem just put it back in later on in the year and you won’t loose any of your tax-free entitlement.
New personal savings allowance from April 2016. The first £1,000 of interest you earn of savings will be tax free! If you pay the higher rate of tax, you’ll benefit from a £500 tax-free allowance.
Enjoy a tipple?
1 pence off a pint of beer for the third year running! Duty on spirits and cider are being reduced by 2% and duty on wine has been frozen.
The fuel duty increase that was due to take place in September this year has been postponed.
Corporation tax is to fall to 20% from April, which makes it the joint lowest in the G20.
Do you fill out a tax return?
You’ll be pleased to hear that the annual chore is being abolished. Instead details will be uploaded automatically into a new online digital account.
Fancy selling your annuities?
Pensioners will be able to sell them to insurers from April 2016. This will ensure that those pensioners, who are already enjoying their retirement, will not miss out on the extra freedom being brought in from April this year.
Struggling on minimum wage?
The National Minimum Wage will increase by 20p to £6.70 per hour from October 2015.
We can’t all be winners, who’s not benefiting from the 2015 budget?
Big Pension savers
The allowance was cut from £1.5m to £1.25m in 2014 and it’s being cut again this year to £1m. However from 2018, the allowance will rise again in line with inflation.
Their levy (or tax to you and I) is being increased from 0.156% to 0.21%. It is anticipated that it will raise around £900 million a year!
The government are getting wiser to these dodgers and are in the process of closing a number of loopholes. It is anticipated that £3.1 billion will be raised from this.